Industry news and views from Panacea and our partners.
Columbia Threadneedle Investments
Columbia Threadneedle: The power of financial inclusion
Emerging markets are home to nearly of all the world’s unbanked population. According to data published by the World Banki, those without access to financial services are most likely to be the very poorest households, young people and those who have received the least education.
Columbia Threadneedle: ESG Viewpoint – Should ‘doing good’ pay out? Linking executive pay to ESG metrics
ESG metrics in pay matter. We explain why, outline our expectations for companies in this area and detail our engagement efforts and the progress made.
Columbia Threadneedle: Is the UK headed for a Financial Crisis?
A distinguished economist once said that economic policy is like driving a car with blackened front and side windows. This week, the Bank of England (BoE) will hit the brakes with another base rate rise. Two days later Liz Truss’s new Chancellor, Kwasi Kwarteng, will press down on the accelerator with a fiscal event that cuts taxes and provides a massive open-ended energy subsidy to every household in the UK. We could skid off into a recessionary ditch or jump into a scary fast lane of rising inflation and very high interest rates. Or we could get a financial crash with all three.
Columbia Threadneedle: Capital with purpose – impact investing in listed equities
Faced with complex global issues like climate change the definition of impact investing needs to expand. Our Global ESG Equities Team argue the case for making a positive difference through investment in public equities.
Columbia Threadneedle: Will the UK avoid recession?
Last week we lost our dear Queen. A sad time indeed. We gained a new Prime minister and a massive new package of energy support. This week’s video will look at the implications for the UK economy, sterling and government bonds yields.
Columbia Threadneedle: Smart Choices for a Smarter Future
On 13 July 2022 the F&C Investment Trust (FCIT) held its bi-annual lecture. Established over 150 years ago, FCIT is the oldest investment trust in the world. Part of its enduring success is down to its forward-looking approach and an appreciation of how the future should be considered today.
Columbia Threadneedle: Income investing – a return to form
With rising dividends and bond yields higher, the outlook is looking brighter for income investors. We explore how income streams are picking up across asset classes – both traditional and alternative – and assess the prospects from here.
Columbia Threadneedle: The 2022 US Proxy Season: Emerging ESG-related matters in the US market and what it portends for 2023
This past proxy season was touted as one for the ages vis-à-vis volume of ESG-related proposals. It did not disappoint. According to Georgeson, over 900 ESG-related proposals were filed for proxy season 2022. Of those, over 600 were placed on annual general meeting (AGM) dockets, compared to roughly 400 in 2021.
UK equities: reasons to be cheerful?!
For those of you old enough to remember 1978-79, we lived through what was known as the Winter of Discontent. One of the most famous depictions of this was Leicester Square overflowing with rubbish bags after the binmen – or waste operatives, as we might say nowadays – went on strike. Overlooking this scene were billboards for the films showing at the square’s famous cinemas at the time. These were, somewhat ominously and appropriately, Jaws 2 and Damien: Omen II.
Columbia Threadneedle: Will sterling hit parity with the US dollar?
The focus this week is on sterling and a discussion on the chances of a full-blown crisis this winter.
Columbia Threadneedle: Energy bills rise in Europe but fall in the US
This week we’re going to discuss the extraordinary divergence in energy prices between the US and Europe. We’ll suggest that the prospect of sky-high prices for natural gas this winter look set to mean recession in Europe and the UK.
Columbia Threadneedle: Standstill on Ukraine debt is right for both the country and our clients
The daily headlines paint a very clear picture of the tragic and devastating human toll that Ukrainians are suffering at the hands of Russian invasion. What is also a threat, although not on the front pages of newspapers, is the very real danger of a balance of payments mismatch that risks a destabilising macro crisis. Ukraine has a large and growing need for dollars to finance critical imports and steady its economy.
Columbia Threadneedle: Jet zero – how investors can get on board for the long haul of aviation decarbonisation
After the COVID-19 pandemic grounded the global aviation industry in 2020, airlines and investors are keen to see passenger numbers take off again. However, as passenger numbers are starting to rebound, so too are the industry’s carbon emissions.
Columbia Threadneedle: CIO outlook: global markets, Ukraine, recession fears and supply chains
As the conflict in Ukraine rumbles on we assess the impact of sanctions on Russia. We also consider the actions of central banks’ and explain why and when we expect to see improvement in global supply chain issues.
Columbia Threadneedle: Energy crisis response: repowering Europe
The conflict between Russia and Ukraine exposed Europe to an energy shock without precedent, exacerbating an environment of already high energy prices and creating an energy supply crisis. The EU receives around 40% of its gas from Russia, so in response to this crisis it unveiled in March an energy plan called “RePowerEU”. Its aim is to reduce Europe’s gas dependence on Russia by two thirds by the end of 2022 and to zero by 2030.1
Columbia Threadneedle: ESG knowledge shared: August 2022
We’re back with our monthly roundup of ESG content highlights – articles we’re reading, podcasts we’re enjoying, useful videos and more.
Columbia Threadneedle: When will central banks stop hiking interest rates?
The Bank of England delivered a 0.5% rise in the Bank Rate last week. This came after an even bigger move by the US and a similar hike by the European Central Bank. We explore the reasons behind the hikes and ask what will it take for us to see an end to the rises? Although inflation is at a similar level in Europe and the US in headline terms, the composition is quite different. In the UK and euro area, energy prices are the chief culprit with gas prices leading the way. In the US, domestic pressures predominate. Wages there are rising strongly – much faster than in Europe – as are rents.
Columbia Threadneedle: Paperback readers: the team’s summer reading lists
We asked the Global Equities Team what books they will be devouring this summer, and as ever it’s an eclectic collection with something for everyone. See how many you’ve read!
Columbia Threadneedle: Recession Worries Dominate
Interest rates are headed higher and we’re on a clear course to recession in the US and Europe. The reasons for recession do vary though. In the US, domestic demand pressures are so strong that the Federal Reserve (Fed)will have to engineer a recession to get inflation back down to target.
Columbia Threadneedle: CT Responsible Global Equity Strategy – ESG Profile and Impact Report 2022
Welcome to our seventh annual impact report for the Responsible Global Equity Strategy.
Columbia Threadneedle: Responsible Investment Quarterly Q1 2022
Welcome to the newly designed Responsible Investment Quarterly. Over a number of years we have developed the publication to showcase Columbia Threadneedle Investment’s responsible investment (RI) capabilities across Europe, Asia and the US. In this new incarnation we wanted to focus more on the RI research embedded within our investment process, and how it supports and furthers our investment approach across the globe.
Columbia Threadneedle: A circular transition for plastics
Plastics are a growing environmental problem and increasingly a focal point for policy at national and international level. In recent months, the UN has agreed to develop a global treaty on plastics which could include cuts in virgin plastic production, as well as increasing collection and recycling infrastructure.
Columbia Threadneedle: Coming Together
In November 2021, BMO GAM (EMEA) became part of Columbia Threadneedle Investments, bringing additional capabilities in areas such as investment solutions, alternatives and responsible investment, as well as a range of investment trusts.
Columbia Threadneedle: Multi-Manager People’s Perspectives
It has been a relatively quiet week for news after the plethora of central bank meetings last week. Equities have made a little progress, while government bonds have rallied as worries over economic growth slowing outweigh worries over central banks raising rates to counter inflation.
Columbia Threadneedle: UK small and mid-cap: for the rebound and beyond
It might be a cliché, but history does repeat itself. Investors are always too fearful approaching the bottom of a cyclical downturn and miss opportunities that in hindsight are obvious. But fundamental and empirical evidence discussed here suggests we are within range of one of the best opportunities in UK small and mid-cap in a decade
Columbia Threadneedle: Obesity: fighting a growing health issue
We all know obesity is a major health issue. According to the World Health Organisation it affects 650 million people globally and its prevalence is three times what it was in 1975.
Columbia Threadneedle: Spotlight on Asian Income: opportunities in a reflationary environment.
Asian equity recovery continues to broaden, laying the foundations for a period of potentially strong growth for income stocks.
Columbia Threadneedle: UK is a rich seam to mine … and not just in commodities
It’s been a volatile start to 2022, with the conflict in Ukraine creating huge disruption in oil markets, and adding to ongoing pressures seen in markets already dealing with the ongoing Covid-19 situation and supply chain issues.
Columbia Threadneedle: In Credit Weekly Snapshot – April 2022
Our fixed income team provide their weekly snapshot of market events.
Columbia Threadneedle: Emerging markets: volatility doesn’t disrupt the process
Following the recent challenging period we felt it prudent to communicate our views. Since the end of Q321 our Emerging Markets Opportunity strategy has experienced volatile performance, coinciding with considerable market volatility. We have made mistakes and we feel the market is making mistakes too.